Neurons can be categorized as either myelinated or non-myelinated. Myelinated neurons have axons covered with a myelin sheath, which is formed by Schwann cells wrapping their cell membranes around the axon. The myelin sheath provides insulation and allows faster signal transmission. Non-myelinated neurons lack this sheath. Neurons can also be classified based on their structure, with unipolar neurons having one process, bipolar neurons having two processes, and multipolar neurons having multiple dendrites plus one axon.